Oh ok. I didn’t know you were so far.
But if your aid is almost covering the tuition, then why are your parents borrowing $8k in parent plus loans?
Just because the parent plus loan is offered in the aid package, they don’t have to take it.
They can just pay the rent in monthly installments, but without interest.
yea i was just confused i just realized that the free money in grants and scholarships is basically my whole tuition and they are only taking the parent loan for my housing which is like 6k a year. because the apartment is so expensive,$715 a month, the $6k from parent plus will cover that.
-they also said the sub and unsub are not actually loans for me since my tuition and room is covered. So i can give that back but I’m happy that my actual tuition is basically paid for, they only have to pay $140 a semester
No, you should keep the Stafford loans. $3500 of that is subsidized and you won’t have to pay interest on it until you leave school, and the other $2000 is at a low rate. The Plus loan has a 5% origination fee plus a higher interest rate. Keep the Stafford ($5500), cancel the Plus, and work for the $2000 or so you’ll need to supplement it for living expenses during the year.
Also, are you living in the apartment alone, could you get a roommate to help with costs?
I agree with twoin, take out full stafford loans first before Parent Plus. Loans can be returned through the school for 120 days after disbursement and you should get origination fees waived I think.
Do what #82 said : Stafford loans have lower origination fees, lower interest (= cost) and part of it is subsidized. None if this is true for parent PLUS loans. ‘save’ those for when you go to up, don’t take them now but in two years and only if necessary. You pay tuition with grants and scholarships, rent with Stafford subsidized, food with Stafford unsubsidized, everything else with a few hours working (6 should be enough). Don’t burden your parents with a loan they don’t need, which you don’t need… And which you may need later!
And make sure you work this summer. Rent on an apartment lease might still be due in the summer, if it is a year lease.
i have 2 other roommates, & it’s a 10 month lease so I’m done living there by may